Every time a listed company offers Bonus and Right Shares, the share price is adjusted by the Nepal Stock Exchange to reflect the addition of shares due to bonus/right issuance. Such, prices are adjusted immediately after the book closure dates.
Here is the formula to calculate the adjusted price:
The market price in the below formula is the last transaction price (LTP) of a scrip just before the book closure date.
1. Bonus Share
Adjusted Price = Market Price/(1 + Bonus Share%)
For example, if a company offers 25 % bonus shares and the closing Market price of the share just before the book closure date is Rs 390/unit then the adjusted price after the bonus share will be:
Adjusted Price = Market Pice /(1 + Bonus Share%)
= 390 / (1 + 0.25)
= 390/1.25
Adjusted Price = Rs 312 / unit
Published on: ShareSansar (Oct 13, 2015)
